Energy
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LPG Market Thrives

LPG Market ThrivesLPG Market Thrives

Iran's quality liquefied petroleum gas has received a tremendous welcome in international markets and more foreign customers have recently shown interest in purchasing LPG from the Persian Gulf state, managing director of National Iranian Gas Company said on Monday.

“Due to the removal of sanctions and shipping companies' insurance constraints, the export of not only oil byproducts but also non-oil commodities, including LPG, has witnessed a dramatic rise. Moreover, banking transactions are done much faster because of which there is an upward trend in export sector, especially when it comes to gas products,” Hamidreza Araqi was quoted as saying by IRNA.

Underscoring the fact that more than 5 million tons of LPG are exported to target destinations like China, India, Pakistan, China and Africa, per annum, the official stressed that as new South Pars phases go on stream, the country's gas output and export will experience a significant surge.

Referring to the strong sales of Iran's sulfur and LPG, Araqi noted that trading of such commodities has flourished as Iranian ships can sail through the international waters.

According to the official, plans have been made to play a bigger role in world markets by adopting new marketing strategies to boost export and sales volume.

"The more South Pars phases become operational, the larger market share Iran will hold in global markets," he said, noting that sulfur output from country's natural gas refineries has increased by 20% in April 2016 compared to the corresponding period of last year.  

Stressing that Iran is among leading sulfur exporters in the world, Araqi said, "The annual export volume of the commodity to other states stands at 1,100 million tons."

"Currently, LPG produced in South Pars Gas Complex, Bushehr Fajr-Jam as well as Sarkhoun and Qeshm gas refineries is exported to different states," he said.

According to Mohammad Souri, the oil minister's advisor on strategic affairs, 17 LPG carriers have recently been added to Iran's fleet to fill the big gap between the low number of ships and the large amount of goods to be exported. Hassan Khosrojerdi, the head of Petrochemical, Gas and Oil Exporters' Union, had already expressed concern that Iran's small LPG fleet had reduced export.

LPG has a high heating or caloric value, which means that as an energy source, LPG provides a high level of heat in a short lifetime. LPG also has a virtual absence of sulfur, leading to cleaner burning.

In order to transport it, LPG needs to be placed under modest pressure to form a liquid. It can then be stored and transported in LPG cylinders.

Financialtribune.com